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This is the determination of the Railroad Retirement Board concerning the status
of Natchez Railway, LLC (Natchez) as an employer under the Railroad Retirement
Act (45 U.S.C. § 231 et seq.) and the Railroad Unemployment Insurance Act (45
U.S.C. § 351 et seq.). The status of Natchez under the Acts has not previously
been considered. Information about Natchez was provided by Mr. Michael J. Van
Wagenen, Vice President of Natchez. Natchez is owned by Mr. Kern Schumacher and
Ms. Rhonda Nicoloff. According to Mr. Van Wagenen,
operations began on July 1, 2009.
In Surface Transportation Board (STB) Finance Docket No. 35248, decided May
21, 2009, Natchez filed a verified notice of exemption to acquire and operate
approximately 65.6 miles of railroad line from the Illinois Central Railroad
Company (ICRC). In STB Finance Docket No. 35249, also decided May 21, 2009, Mr.
Schumacher filed a verified notice of exemption to continue in control of
Natchez as well as Grenada Railway, LLC,
upon Natchez and Grenada becoming Class III rail carriers.
According to Mr. Van Wagenen, Natchez expects to ship between 2,000 and 3,000
cars annually, and will interchange with ICRC and CN. Natchez certified to the
STB that its projected annual revenue as a result of the transaction will not
exceed those that qualify it as a Class III rail carrier.
Section 1(a)(1) of the Railroad Retirement Act (45 U.S.C. § 231(a)(1)),
insofar as relevant here, defines a covered employer as:
(i) any carrier by railroad subject to the jurisdiction of the Surface
Transportation Board under Part A of subtitle IV of title 49, United States
Code;
Section 1 of the RUIA (45 U.S.C. § 351) contains essentially the same
definition, as does section 3231 of the Railroad Retirement Tax Act (26 U.S.C.§
3231).
The evidence of record establishes that Natchez is a rail carrier operating
in interstate commerce. Accordingly, it is determined that Natchez Railway, LLC,
became an employer within the meaning of section 1(a)(1)(i) of the Railroad
Retirement Act and its corresponding provision of the Railroad Unemployment
Insurance Act effective July 1, 2009, the date on which it began operations.
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Original signed by: |
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FOR THE BOARD
Beatrice Ezerski
Secretary to the Board |
Mr. Schumacher is the
majority stockholder in A&K Railroad Materials, Inc., an entity we have found
not to be covered under the Acts. See, B.C.D. 94-7. Mr. Schumacher is also the
majority stockholder of T&P Railway, Inc., an employer under the Acts (B.A. No.
3778); Kern Valley Railroad Company (B.A. No. 5736); V&S Railroad, Inc. (B.A.
No. 2796); and Gloster Southern Railroad Company, LLC (B.A. No. 2583).
The employer status of
Grenada Railway, LLC is being considered under separate cover. |
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